- Consolidated Revenues of $25.3B, Compared to $24.9B Last
Year
- Consolidated Operating Margin of 11.6%; Non-GAAP Adjusted*
Consolidated Operating Margin of 12.3%
- Diluted EPS of $2.01; Non-GAAP Adj. Diluted EPS of $2.75,
Compared to $2.47 Last Year
UPS (NYSE:UPS) today announced fourth-quarter 2024 consolidated
revenues of $25.3 billion, a 1.5% increase from the fourth quarter
of 2023. Consolidated operating profit was $2.9 billion, up 18.1%
compared to the fourth quarter of 2023, and up 11.2% on a non-GAAP
adjusted basis. Diluted earnings per share were $2.01 for the
quarter; non-GAAP adjusted diluted earnings per share were $2.75,
11.3% above the same period in 2023.
For the fourth quarter of 2024, GAAP results include a total
charge of $639 million, or $0.74 per diluted share, comprised of a
non-cash, after-tax mark-to-market (MTM) pension charge of $506
million, total after-tax transformation strategy costs of $73
million, after-tax asset impairment charges of $46 million, and
after-tax cost of $14 million related to the withdrawal from a
multiemployer pension plan.
“I want to thank all UPSers for their hard work and efforts as
we closed out 2024 with an outstanding peak, delivering
best-in-class service and strong financial results ahead of our
targets for the quarter,” said Carol Tomé, UPS chief executive
officer.
U.S. Domestic Segment†
4Q
2024
Non-GAAP
Adjusted
4Q
2024
4Q
2023
Non-GAAP
Adjusted
4Q
2023
Revenue
$17,312 M
$16,939 M
Operating profit
$1,681 M
$1,754 M
$1,448 M
$1,580 M
- Revenue increased 2.2%, driven by a 2.4% increase in revenue
per piece and increases in air cargo.
- Operating margin was 9.7%; non-GAAP adjusted operating margin
was 10.1%.
International Segment
4Q
2024
Non-GAAP
Adjusted
4Q
2024
4Q
2023
Non-GAAP
Adjusted
4Q
2023
Revenue
$4,923 M
$4,606 M
Operating profit
$1,019 M
$1,062 M
$890 M
$899 M
- Revenue increased 6.9%, driven by an 8.8% increase in average
daily volume.
- Operating margin was 20.7%; non-GAAP adjusted operating margin
was 21.6%.
Supply Chain Solutions1 †
4Q
2024
Non-GAAP
Adjusted
4Q
2024
4Q
2023
Non-GAAP
Adjusted
4Q
2023
Revenue
$3,066 M
$3,372 M
Operating profit
$226 M
$284 M
$139 M
$308 M
¹ Consists of operating segments that do
not meet the criteria of a reportable segment under ASC Topic 280 –
Segment Reporting.
- Revenue declined 9.1%, due to a reduction in revenue following
the divestiture of Coyote, partially offset by growth in air and
ocean forwarding.
- Operating margin was 7.4%; non-GAAP adjusted operating margin
was 9.3%.
Full-Year 2024 Consolidated
Results
- Revenue was $91.1 billion.
- Operating profit of $8.5 billion; non-GAAP adjusted operating
profit of $8.9 billion.
- Operating margin was 9.3%; non-GAAP adjusted operating margin
was 9.8%.
- Diluted EPS totaled $6.75; non-GAAP adjusted diluted EPS of
$7.72.
- Cash from operations was $10.1 billion and non-GAAP adjusted
free cash flow was $6.3 billion.
In addition, the company returned $5.9 billion of cash to
shareowners through dividends and share repurchases.
2025 Outlook
The company provides certain guidance on a non-GAAP adjusted
basis because it is not possible to predict or provide a
reconciliation reflecting the impact of various potential future
events, including the impact of pension adjustments, certain
strategic initiatives or other unanticipated events, which would be
included in reported (GAAP) results and could be material.
Today the company announces the following set of strategic
actions: first, it has reached an agreement in principle with its
largest customer to lower its volume by more than 50% by the second
half of 2026; second, effective January 1, 2025, the company has
insourced 100% of its UPS SurePost product; and third, in
connection with these efforts, the company is reconfiguring its
U.S. network, and launching multi-year “efficiency reimagined”
initiatives to drive approximately $1.0 billion in savings through
an end-to-end process redesign.
“We are making business and operational changes that, along with
the foundational changes we’ve already made, will put us further
down the path to becoming a more profitable, agile and
differentiated UPS that is growing in the best parts of the
market,” said Tomé.
For the full year 2025, on a consolidated basis, UPS expects
revenue to be approximately $89.0 billion and operating margin to
be approximately 10.8%.
The company is planning capital expenditures of about $3.5
billion, dividend payments of around $5.5 billion, subject to board
approval, and share repurchases of around $1.0 billion. The
effective tax rate is expected to be around 23.5%.
* “Non-GAAP Adjusted” or “Non-GAAP Adj.”
amounts are non-GAAP adjusted financial measures. See the appendix
to this release for a discussion of non-GAAP adjusted financial
measures, including a reconciliation to the most closely correlated
GAAP measure.
† Certain prior year amounts have been
reclassified to conform to the current year presentation, including
the recast of air cargo volume to U.S. Domestic, with no change to
consolidated results. Certain amounts are calculated based on
unrounded numbers.
Conference Call
Information
UPS CEO Carol Tomé and CFO Brian Dykes will discuss
fourth-quarter results with investors and analysts during a
conference call at 8:30 a.m. ET, January 30, 2025. That call will
be open to others through a live Webcast. To access the call, go to
www.investors.ups.com and click on “Earnings Conference Call.”
Additional financial information is included in the detailed
financial schedules being posted on www.investors.ups.com under
“Quarterly Earnings and Financials” and as furnished to the SEC as
an exhibit to our Current Report on Form 8-K.
About UPS
UPS (NYSE: UPS) is one of the world’s largest companies, with
2023 revenue of $91.0 billion, and provides a broad range of
integrated logistics solutions for customers in more than 200
countries and territories. Focused on its purpose statement,
“Moving our world forward by delivering what matters,” the
company’s approximately 500,000 employees embrace a strategy that
is simply stated and powerfully executed: Customer First. People
Led. Innovation Driven. UPS is committed to reducing its impact on
the environment and supporting the communities we serve around the
world. More information can be found at www.ups.com, about.ups.com
and www.investors.ups.com.
Forward-Looking
Statements
This release, our Annual Report on Form 10-K for the year ended
December 31, 2023 and our other filings with the Securities and
Exchange Commission contain and in the future may contain
“forward-looking statements”. Statements other than those of
current or historical fact, and all statements accompanied by terms
such as “will,” “believe,” “project,” “expect,” “estimate,”
“assume,” “intend,” “anticipate,” “target,” “plan,” and similar
terms, are intended to be forward-looking statements.
From time to time, we also include written or oral
forward-looking statements in other publicly disclosed materials.
Forward-looking statements may relate to our intent, belief,
forecasts of, or current expectations about our strategic
direction, prospects, future results, or future events; they do not
relate strictly to historical or current facts. Management believes
that these forward-looking statements are reasonable as and when
made. However, caution should be taken not to place undue reliance
on any forward-looking statements because such statements speak
only as of the date when made and the future, by its very nature,
cannot be predicted with certainty.
Forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our historical experience and our present expectations or
anticipated results. These risks and uncertainties include, but are
not limited to: changes in general economic conditions in the U.S.
or internationally; significant competition on a local, regional,
national and international basis; changes in our relationships with
our significant customers; our ability to attract and retain
qualified employees; strikes, work stoppages or slowdowns by our
employees; increased or more complex physical or operational
security requirements; a significant cybersecurity incident, or
increased data protection regulations; our ability to maintain our
brand image and corporate reputation; impacts from global climate
change; interruptions in or impacts on our business from natural or
man-made events or disasters including terrorist attacks, epidemics
or pandemics; exposure to changing economic, political, regulatory
and social developments in international and emerging markets; our
ability to realize the anticipated benefits from acquisitions,
dispositions, joint ventures or strategic alliances; the effects of
changing prices of energy, including gasoline, diesel, jet fuel,
other fuels and interruptions in supplies of these commodities;
changes in exchange rates or interest rates; our ability to
accurately forecast our future capital investment needs; increases
in our expenses or funding obligations relating to employee health,
retiree health and/or pension benefits; our ability to manage
insurance and claims expenses; changes in business strategy,
government regulations or economic or market conditions that may
result in impairments of our assets; potential additional U.S. or
international tax liabilities; increasingly stringent regulations
related to climate change; potential claims or litigation related
to labor and employment, personal injury, property damage, business
practices, environmental liability and other matters; and other
risks discussed in our filings with the Securities and Exchange
Commission from time to time, including our Annual Report on Form
10-K for the year ended December 31, 2023, and subsequently filed
reports. You should consider the limitations on, and risks
associated with, forward-looking statements and not unduly rely on
the accuracy of predictions contained in such forward-looking
statements. We do not undertake any obligation to update
forward-looking statements to reflect events, circumstances,
changes in expectations, or the occurrence of unanticipated events
after the date of those statements, except as required by law.
The Company routinely posts important information, including
news releases, announcements, materials provided or displayed at
analyst or investor conferences, and other statements about its
business and results of operations, that may be deemed material to
investors on the Company’s Investors Relations website at
www.investors.ups.com. The Company uses its website as a means of
disclosing material, nonpublic information and for complying with
the Company’s disclosure obligations under Regulation FD. Investors
should monitor the Company’s Investor Relations website in addition
to following the Company’s press releases, filings with the SEC,
public conference calls and webcasts. We do not incorporate the
contents of any website into this or any other report we file with
the SEC.
Reconciliation of GAAP and Non-GAAP
Adjusted Financial Measures
We supplement the reporting of our financial information
determined under generally accepted accounting principles ("GAAP")
with certain non-GAAP adjusted financial measures. Management views
and evaluates business performance on both a GAAP basis and by
excluding costs and benefits associated with these non-GAAP
adjusted financial measures. As a result, we believe the
presentation of these non-GAAP adjusted financial measures better
enables users of our financial information to view and evaluate
underlying business performance from the same perspective as
management.
Non-GAAP adjusted financial measures should be considered in
addition to, and not as an alternative for, our reported results
prepared in accordance with GAAP. Our non-GAAP adjusted financial
measures do not represent a comprehensive basis of accounting and
therefore may not be comparable to similarly titled measures
reported by other companies.
Forward-Looking Non-GAAP Adjusted Financial Metrics
From time to time when presenting forward-looking non-GAAP
metrics, we are unable to provide quantitative reconciliations to
the most closely correlated GAAP measure due to the uncertainty in
the timing, amount or nature of any adjustments, which could be
material in any period.
One-Time Payment for International Regulatory Matter
We supplement the presentation of operating profit, operating
margin, interest expense, total other income (expense), income
before income taxes, net income and earnings per share with
non-GAAP measures that exclude the impact of a second quarter of
2024 one-time payment of $94 million of previously restricted cash
to settle a previously-disclosed challenge by Italian tax
authorities to the deductibility of Value Added Tax payments by UPS
to certain third-party service providers, a review of which was
launched in the fourth quarter of 2023. We do not believe this is a
component of our ongoing operations and we do not expect this or
similar payments to recur.
Expense for Regulatory Matter
We supplement the presentation of operating profit, operating
margin, interest expense, total other income (expense), income
before income taxes, net income and earnings per share with
non-GAAP measures that exclude the impact of an expense to settle a
regulatory matter that we consider to be unrelated to our ongoing
operations and that we do not expect to recur.
Transformation Strategy Costs
We supplement the presentation of operating profit, operating
margin, income before income taxes, net income and earnings per
share with non-GAAP measures that exclude the impact of charges
related to activities within our transformation strategy. Our
transformation activities have spanned several years to
fundamentally change the spans and layers of our organization
structure, processes, technologies and the composition of our
business portfolio. While earlier stages of these transformation
activities were complete in 2023 (Transformation 1.0), certain
systems implementations and portfolio review activities
(Transformation 2.0) are ongoing and expected to continue through
2025. We previously announced initiatives under Fit to Serve to
right-size our business through a workforce reduction of
approximately 12,000 positions throughout 2024 and create a more
efficient operating model to enhance responsiveness to changing
market dynamics. Various circumstances have precipitated these
initiatives, including identification and prioritization of
investments as a result of executive leadership changes,
developments and changes in competitive landscapes, inflationary
pressures, consumer behaviors, and other factors including
post-COVID normalization and volume diversions attributed to our
2023 labor negotiations.
As disclosed on January 30, 2025, we are beginning a network
reconfiguration which is expected to lead to consolidations of our
facilities and workforce as well as end-to-end process redesign
from 2025 – 2027. Our network reconfiguration is expected to result
in exit activities that could result in the closure of up to 10% of
our buildings, a reduction in the size of our vehicle and aircraft
fleets, and a decrease in the size of our workforce. These costs
are in addition to operational costs that we may incur. We are not
yet able to determine the specific assets or extent of our
workforce that will be impacted by our network redesign, the timing
of those future changes or the associated charges we will incur and
therefore are not currently able to provide an estimate of the
total cost or the cost by period. We expect that impacted assets
will remain in use during some or all of the periods of our network
reconfiguration.
We expect to partially offset incurred costs through end-to-end
process redesign carried out during our network reconfiguration
through our Efficiency Reimagined initiatives. These initiatives
are being undertaken to align our organizational processes to the
operational changes expected to occur in our network
reconfiguration and drive organizational efficiency. These
initiatives are expected to yield approximately $1.0 billion in
annualized savings. We incurred related costs of $35 million for
the three months ended December 31, 2024. We expect to incur
related costs of approximately $300 to $400 million during 2025
primarily associated with outside professional services and
severance. Upon the completion of our network reconfiguration and
Efficiency Reimagined initiatives, we expect to realize further
benefits in subsequent periods from lower expense, including
depreciation, compensation, benefit and other, as well as lower
capital requirements.
We do not consider the related costs to be ordinary because each
program involves separate and distinct activities that may span
multiple periods and are not expected to drive incremental revenue,
and because the scope of the programs exceeded that of routine,
ongoing efforts to enhance profitability. These initiatives are in
addition to ordinary, ongoing efforts to enhance business
performance.
Goodwill and Asset Impairments
We supplement the presentation of operating profit, operating
margin, income before income taxes, net income and earnings per
share with non-GAAP measures that exclude the impact of goodwill
and asset impairment charges. We do not consider these charges when
evaluating the operating performance of our business units, making
decisions to allocate resources or in determining incentive
compensation awards.
Gains and Losses Related to Divestitures
We supplement the presentation of operating profit, operating
margin, income before income taxes, net income and earnings per
share with non-GAAP measures that exclude the impact of gains (or
losses) related to the divestiture of businesses. We do not
consider these transactions when evaluating the operating
performance of our business units, making decisions to allocate
resources or in determining incentive compensation awards.
One-Time Compensation Payment
We supplement the presentation of operating profit, operating
margin, income before income taxes, net income and earnings per
share with non-GAAP measures that exclude the impact of a one-time
payment made to certain U.S.-based, non-union part-time supervisors
following the ratification of our labor agreement with the
Teamsters in 2023. We do not expect this or similar payments to
recur.
Multiemployer Pension Plan Withdrawal
We supplement the presentation of operating profit, operating
margin, income before income taxes, net income and earnings per
share with non-GAAP measures that exclude the impact of a charge
related to the withdrawal from a multiemployer pension plan within
the United States. We do not consider these costs to be related to
our ongoing operations nor do we expect them to recur.
Non-GAAP Adjusted Cost per Piece
We evaluate the efficiency of our operations using various
metrics, including non-GAAP adjusted cost per piece. Non-GAAP
adjusted cost per piece is calculated as non-GAAP adjusted
operating expenses in a period divided by total volume for that
period. Because non-GAAP adjusted operating expenses exclude costs
or charges that we do not consider a part of underlying business
performance when monitoring and evaluating the operating
performance of our business units, making decisions to allocate
resources or in determining incentive compensation awards, we
believe this is the appropriate metric on which to base reviews and
evaluations of the efficiency of our operational performance.
Defined Benefit Pension and Postretirement Medical Plan Gains
and Losses
We recognize changes in the fair value of plan assets and net
actuarial gains and losses in excess of a 10% corridor (defined as
10% of the greater of the fair value of plan assets or the plan's
projected benefit obligation), as well as gains and losses
resulting from plan curtailments and settlements, for our pension
and postretirement defined benefit plans immediately as part of
Investment income (expense) and other in the statements of
consolidated income. We supplement the presentation of our income
before income taxes, net income and earnings per share with
adjusted measures that exclude the impact of these gains and losses
and the related income tax effects. We believe excluding these
defined benefit pension and postretirement plan gains and losses
provides important supplemental information by removing the
volatility associated with plan amendments and short-term changes
in market interest rates, equity values and similar factors.
Free Cash Flow
We calculate free cash flow as cash flows from operating
activities less capital expenditures, proceeds from disposals of
property, plant and equipment, and plus or minus the net changes in
other investing activities. We believe free cash flow is an
important indicator of how much cash is generated by our ongoing
business operations and we use this as a measure of incremental
cash available to invest in our business, meet our debt obligations
and return cash to shareowners.
Non-GAAP adjusted Total Debt / Non-GAAP adjusted EBITDA
Non-GAAP adjusted total debt is defined as our long-term debt
and finance leases, including current maturities, plus non-current
pension and postretirement benefit obligations. Non-GAAP adjusted
EBITDA is defined as earnings before interest, taxes, depreciation
and amortization adjusted for the impacts of transformation
strategy costs, a gain on divestiture of Coyote, a one-time payment
for an international regulatory matter, goodwill and asset
impairment charges, a one-time compensation payment, expense
related to a regulatory matter, defined benefit plan gains and
losses, investment income and other pension income, and a charge to
withdraw from a multiemployer benefit plan. We believe the ratio of
adjusted total debt to adjusted EBITDA is an important indicator of
our financial strength, and is a ratio used by third parties when
evaluating the level of our indebtedness.
Non-GAAP Adjusted Return on Invested Capital
Non-GAAP Adjusted ROIC is calculated as the trailing twelve
months (“TTM”) of non-GAAP adjusted operating income divided by the
average of total debt, non-current pension and postretirement
benefit obligations and shareowners’ equity, at the current period
end and the corresponding period end of the prior year. Because
non-GAAP adjusted ROIC is not a measure defined by GAAP, we
calculate it, in part, using non-GAAP financial measures that we
believe are most indicative of our ongoing business performance. We
consider non-GAAP adjusted ROIC to be a useful measure for
evaluating the effectiveness and efficiency of our long-term
capital investments.
United Parcel Service,
Inc.
Reconciliation of GAAP and
Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
December 31
(amounts in millions)
2024
2024
Operating Profit (GAAP)
$
2,926
Operating Margin (GAAP)
11.6
%
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Financial systems
13
Financial systems
0.1
%
Transformation 2.0 total
13
Transformation 2.0 total
0.1
%
Fit to Serve
47
Fit to Serve
0.2
%
Network Redesign and Efficiency
Reimagined
35
Network Redesign and Efficiency
Reimagined
0.1
%
Total Transformation Strategy Costs
95
Total Transformation Strategy Costs
0.4
%
Goodwill and Asset Impairment Charges
(1)
60
Goodwill and Asset Impairment Charges
(1)
0.2
%
Multiemployer Pension Plan Withdrawal
(2)
19
Multiemployer Pension Plan Withdrawal
(2)
0.1
%
Non-GAAP Adjusted Operating Profit
$
3,100
Non-GAAP Adjusted Operating Margin
12.3
%
(amounts in millions)
2024
Other Income (Expense) (GAAP)
$
(799
)
Pension Adjustment (3)
665
Non-GAAP Adjusted Other Income
(Expense)
$
(134
)
(1) Reflects pre-tax impairment charges of
$60 million for IT systems and other fixed assets within Supply
Chain Solutions in 2024.
(2) Reflects a pre-tax one-time charge of
$19 million to withdraw from a multiemployer pension plan within
the United States.
(3) Net mark-to-market loss recognized
outside of a 10% corridor on company-sponsored defined benefit
pension and postretirement plans.
Certain prior year amounts have been
reclassified to conform to the current year presentation, including
the recast of air cargo volume to U.S. Domestic, with no change to
consolidated results. Certain amounts are calculated based on
unrounded numbers.
United Parcel Service,
Inc.
Reconciliation of GAAP and
Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
December 31
(amounts in millions)
2024
Income Tax Expense (GAAP)
$
406
Transformation Strategy Costs:
Transformation 2.0
Financial systems
3
Transformation 2.0 total
3
Fit to Serve
11
Network Redesign and Efficiency
Reimagined
8
Total Transformation Strategy Costs
22
Goodwill and Asset Impairment Charges
(1)
14
Multiemployer Pension Plan Withdrawal
(2)
5
Pension Adjustment (3)
159
Non-GAAP Adjusted Income Tax Expense
$
606
(1) Reflects the tax effect of a pre-tax
impairment charges of $60 million for IT systems and other fixed
assets within Supply Chain Solutions in 2024.
(2) Reflects the tax effect of a pre-tax
one-time charge of $19 million to withdraw from a multiemployer
pension plan within the United States.
(3) Reflects the tax effect of a net
mark-to-market loss recognized outside of a 10% corridor on
company-sponsored defined benefit pension and postretirement
plans.
Certain prior year amounts have been
reclassified to conform to the current year presentation, including
the recast of air cargo volume to U.S. Domestic, with no change to
consolidated results. Certain amounts are calculated based on
unrounded numbers.
United Parcel Service,
Inc.
Reconciliation of GAAP and
Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
December 31
(amounts in millions)
2024
2024
Net Income (GAAP)
$
1,721
Diluted Earnings Per Share
(GAAP)
$
2.01
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Financial systems
10
Financial systems
0.01
Transformation 2.0 total
10
Transformation 2.0 total
0.01
Fit to Serve
36
Fit to Serve
0.04
Network Redesign and Efficiency
Reimagined
27
Network Redesign and Efficiency
Reimagined
0.03
Total Transformation Strategy Costs
73
Total Transformation Strategy Costs
0.08
Goodwill and Asset Impairment Charges
(1)
46
Goodwill and Asset Impairment Charges
(1)
0.05
Multiemployer Pension Plan Withdrawal
(2)
14
Multiemployer Pension Plan Withdrawal
(2)
0.02
Pension Adjustment (3)
506
Pension Adjustment (3)
0.59
Non-GAAP Adjusted Net Income
$
2,360
Non-GAAP Adjusted Diluted Earnings Per
Share
$
2.75
(1) Reflects pre-tax impairment charges of
$60 million for IT systems and other fixed assets within Supply
Chain Solutions in 2024.
(2) Reflects a pre-tax one-time charge of
$19 million to withdraw from a multiemployer pension plan within
the United States.
(3) Net mark-to-market loss recognized
outside of a 10% corridor on company-sponsored defined benefit
pension and postretirement plans.
Certain prior year amounts have been
reclassified to conform to the current year presentation, including
the recast of air cargo volume to U.S. Domestic, with no change to
consolidated results. Certain amounts are calculated based on
unrounded numbers.
United Parcel Service,
Inc.
Reconciliation of GAAP and
Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
December 31
(amounts in millions)
2023
2023
Operating Profit (GAAP)
$
2,477
Diluted Earnings Per Share
(GAAP)
$
1.87
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 1.0
3
Transformation 1.0
—
Transformation 2.0
Transformation 2.0
Business portfolio review
53
Business portfolio review
0.05
Financial systems
6
Financial systems
—
Other initiatives
1
Other initiatives
—
Transformation 2.0 total
60
Transformation 2.0 total
0.05
Fit to Serve
136
Fit to Serve
0.13
Total Transformation Strategy Costs
199
Total Transformation Strategy Costs
0.18
Goodwill and Asset Impairment Charges
(1)
111
Goodwill and Asset Impairment Charges
(1)
0.10
Pension Adjustment (2)
0.32
Non-GAAP Adjusted Operating Profit
$
2,787
Non-GAAP Adjusted Diluted Earnings Per
Share
$
2.47
(1) Reflects a pre-tax indefinite-lived
intangible asset impairment charge of $111 million within Supply
Chain Solutions in 2023.
(2) Net mark-to-market loss recognized
outside of a 10% corridor on company-sponsored defined benefit
pension and postretirement plans.
Certain prior year amounts have been
reclassified to conform to the current year presentation, including
the recast of air cargo volume to U.S. Domestic, with no change to
consolidated results. Certain amounts are calculated based on
unrounded numbers.
United Parcel Service,
Inc.
Reconciliation of GAAP and
Non-GAAP Adjusted Measures by Segment
(unaudited)
Three Months Ended
December 31
2024
2023
2024
2023
2024
2023
U.S. Domestic Package
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
15,631
$
15,491
0.9
%
$
1,681
$
1,448
16.1
%
9.7
%
8.5
%
Adjusted for:
Transformation Strategy Costs
(54
)
(132
)
(59.1
)%
54
132
(59.1
)%
0.3
%
0.8
%
Multiemployer Pension Plan Withdrawal
(19
)
—
N/A
19
—
N/A
0.1
%
—
%
Non-GAAP Adjusted Measure
$
15,558
$
15,359
1.3
%
$
1,754
$
1,580
11.0
%
10.1
%
9.3
%
2024
2023
2024
2023
2024
2023
International Package
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
3,904
$
3,716
5.1
%
$
1,019
$
890
14.5
%
20.7
%
19.3
%
Adjusted for:
Transformation Strategy Costs
(43
)
(9
)
377.8
%
43
9
377.8
%
0.9
%
0.2
%
Non-GAAP Adjusted Measure
$
3,861
$
3,707
4.2
%
$
1,062
$
899
18.1
%
21.6
%
19.5
%
2024
2023
2024
2023
2024
2023
Supply Chain Solutions
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
2,840
$
3,233
(12.2
)%
$
226
$
139
62.6
%
7.4
%
4.1
%
Adjusted for:
Transformation Strategy Costs
2
(58
)
N/A
(2
)
58
N/A
(0.1
)%
1.7
%
Goodwill and Asset Impairment Charges
(60
)
(111
)
(45.9
)%
60
111
(45.9
)%
2.0
%
3.3
%
Non-GAAP Adjusted Measure
$
2,782
$
3,064
(9.2
)%
$
284
$
308
(7.8
)%
9.3
%
9.1
%
Certain prior year amounts have been
reclassified to conform to the current year presentation, including
the recast of air cargo volume to U.S. Domestic, with no change to
consolidated results. Certain amounts are calculated based on
unrounded numbers.
United Parcel Service,
Inc.
Reconciliation of GAAP and
Non-GAAP Adjusted Measures
(unaudited)
Twelve Months Ended
December 31
(amounts in millions)
2024
2024
Operating Profit (GAAP)
$
8,468
Operating Margin (GAAP)
9.3
%
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Business portfolio review
29
Business portfolio review
—
%
Financial systems
54
Financial systems
0.1
%
Transformation 2.0 total
83
Transformation 2.0 total
0.1
%
Fit to Serve
204
Fit to Serve
0.3
%
Network Redesign and Efficiency
Reimagined
35
Network Redesign and Efficiency
Reimagined
—
%
Total Transformation Strategy Costs
322
Total Transformation Strategy Costs
0.4
%
Gain on Divestiture of Coyote (1)
(156
)
Gain on Divestiture of Coyote (1)
(0.2
)%
One-Time Payment for Int'l Regulatory
Matter (2)
88
One-Time Payment for Int'l Regulatory
Matter (2)
0.1
%
Goodwill and Asset Impairment Charges
(3)
108
Goodwill and Asset Impairment Charges
(3)
0.2
%
Expense for Regulatory Matter (4)
45
Expense for Regulatory Matter (4)
—
%
Multiemployer Pension Plan Withdrawal
(5)
19
Multiemployer Pension Plan Withdrawal
(5)
—
%
Non-GAAP Adjusted Operating Profit
$
8,894
Non-GAAP Adjusted Operating Margin
9.8
%
(amounts in millions)
2024
Other Income (Expense) (GAAP)
$
(1,026
)
One-Time Payment for Int'l Regulatory
Matter (2)
6
Pension Adjustment (6)
665
Non-GAAP Adjusted Other Income
(Expense)
$
(355
)
(1) Represents a pre-tax gain of $156
million on the divestiture of our Coyote Logistics business within
Supply Chain Solutions during 2024.
(2) Reflects a pre-tax one-time payment
for an international regulatory matter and related interest of $94
million.
(3) Reflects pre-tax impairment charges of
$41 million for acquired trade names, $7 million for software
licenses and $60 million for IT systems and other fixed assets
within Supply Chain Solutions in 2024.
(4) Reflects the settlement of a
regulatory matter.
(5) Reflects a pre-tax charge of $19
million to withdraw from a multiemployer pension plan within the
United States.
(6) Net mark-to-market loss recognized
outside of a 10% corridor on company-sponsored defined benefit
pension and postretirement plans.
Certain prior year amounts have been
reclassified to conform to the current year presentation, including
the recast of air cargo volume to U.S. Domestic, with no change to
consolidated results. Certain amounts are calculated based on
unrounded numbers.
United Parcel Service,
Inc.
Reconciliation of GAAP and
Non-GAAP Adjusted Measures
(unaudited)
Twelve Months Ended
December 31
(amounts in millions)
2024
Income Tax Expense (GAAP)
$
1,660
Transformation Strategy Costs:
Transformation 2.0
Business portfolio review
7
Financial systems
13
Transformation 2.0 total
20
Fit to Serve
49
Network Redesign and Efficiency
Reimagined
8
Total Transformation Strategy Costs
77
Gain on Divestiture of Coyote (1)
(4
)
One-Time Payment for Int'l Regulatory
Matter (2)
—
Goodwill and Asset Impairment Charges
(3)
27
Expense for Regulatory Matter (4)
—
Multiemployer Pension Plan Withdrawal
(5)
5
Pension Adjustment (6)
159
Non-GAAP Adjusted Income Tax Expense
$
1,924
(1) Represents the tax effect of a pre-tax
gain of $156 million on the divestiture of our Coyote Logistics
business within Supply Chain Solutions during 2024.
(2) Reflects the tax effect of a pre-tax
one-time payment for an international regulatory matter and related
interest of $94 million.
(3) Reflects the tax effect of pre-tax
impairment charges of $41 million for acquired trade names, $7
million for software licenses and $60 million for IT systems and
other fixed assets within Supply Chain Solutions in 2024.
(4) Reflects the tax effect of the
settlement of a regulatory matter.
(5) Reflects the tax effect of a pre-tax
charge of $19 million to withdraw from a multiemployer pension plan
within the United States.
(6) Reflects the tax effect of a net
mark-to-market loss recognized outside of a 10% corridor on
company-sponsored defined benefit pension and postretirement
plans.
Certain prior year amounts have been
reclassified to conform to the current year presentation, including
the recast of air cargo volume to U.S. Domestic, with no change to
consolidated results. Certain amounts are calculated based on
unrounded numbers.
United Parcel Service,
Inc.
Reconciliation of GAAP and
Non-GAAP Adjusted Measures
(unaudited)
Twelve Months Ended
December 31
(amounts in millions)
2024
2024
Net Income (GAAP)
$
5,782
Diluted Earnings Per Share
(GAAP)
$
6.75
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Business portfolio review
22
Business portfolio review
0.03
Financial systems
41
Financial systems
0.05
Transformation 2.0 total
63
Transformation 2.0 total
0.08
Fit to Serve
155
Fit to Serve
0.18
Network Redesign and Efficiency
Reimagined
27
Network Redesign and Efficiency
Reimagined
0.03
Total Transformation Strategy Costs
245
Total Transformation Strategy Costs
0.29
Gain on Divestiture of Coyote (1)
(152
)
Gain on Divestiture of Coyote (1)
(0.18
)
One-Time Payment for Int'l Regulatory
Matter (2)
94
One-Time Payment for Int'l Regulatory
Matter (2)
0.11
Goodwill and Asset Impairment Charges
(3)
81
Goodwill and Asset Impairment Charges
(3)
0.09
Expense for Regulatory Matter (4)
45
Expense for Regulatory Matter (4)
0.05
Multiemployer Pension Plan Withdrawal
(5)
14
Multiemployer Pension Plan Withdrawal
(5)
0.02
Pension Adjustment (6)
506
Pension Adjustment (6)
0.59
Non-GAAP Adjusted Net Income
$
6,615
Non-GAAP Adjusted Diluted Earnings Per
Share
$
7.72
(1) Represents a pre-tax gain of $156
million on the divestiture of our Coyote Logistics business within
Supply Chain Solutions during 2024.
(2) Reflects a pre-tax one-time payment
for an international regulatory matter and related interest of $94
million.
(3) Reflects pre-tax impairment charges of
$41 million for acquired trade names, $7 million for software
licenses and $60 million for IT systems and other fixed assets
within Supply Chain Solutions in 2024.
(4) Reflects the settlement of a
regulatory matter.
(5) Reflects a pre-tax charge of $19
million to withdraw from a multiemployer pension plan within the
United States.
(6) Net mark-to-market loss recognized
outside of a 10% corridor on company-sponsored defined benefit
pension and postretirement plans.
Certain prior year amounts have been
reclassified to conform to the current year presentation, including
the recast of air cargo volume to U.S. Domestic, with no change to
consolidated results. Certain amounts are calculated based on
unrounded numbers.
United Parcel Service,
Inc.
Reconciliation of GAAP and
Non-GAAP Adjusted Measures by Segment
(unaudited)
Twelve Months Ended
December 31
2024
2023
2024
2023
2024
2023
U.S. Domestic Package
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
56,031
$
55,049
1.8
%
$
4,345
$
5,156
(15.7
)%
7.2
%
8.6
%
Adjusted for:
Transformation Strategy Costs
(147
)
(266
)
(44.7
)%
147
266
(44.7
)%
0.3
%
0.4
%
Goodwill and Asset Impairment Charges
(5
)
—
N/A
5
—
N/A
—
%
—
%
One-Time Compensation
—
(61
)
(100.0
)%
—
61
(100.0
)%
—
%
0.1
%
Multiemployer Pension Plan Withdrawal
(19
)
—
N/A
19
—
N/A
—
%
—
%
Non-GAAP Adjusted Measure
$
55,860
$
54,722
2.1
%
$
4,516
$
5,483
(17.6
)%
7.5
%
9.1
%
2024
2023
2024
2023
2024
2023
International Package
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
14,769
$
14,600
1.2
%
$
3,191
$
3,231
(1.2
)%
17.8
%
18.1
%
Adjusted for:
Transformation Strategy Costs
(79
)
(51
)
54.9
%
79
51
54.9
%
0.4
%
0.3
%
One-Time Payment for Int'l Regulatory
Matter
(88
)
—
N/A
88
—
N/A
0.5
%
—
%
Asset Impairment Charges
(2
)
—
N/A
2
—
N/A
—
%
—
%
Non-GAAP Adjusted Measure
$
14,600
$
14,549
0.4
%
$
3,360
$
3,282
2.4
%
18.7
%
18.4
%
2024
2023
2024
2023
2024
2023
Supply Chain Solutions
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
11,802
$
12,168
(3.0
)%
$
932
$
754
23.6
%
7.3
%
5.8
%
Adjusted for:
Transformation Strategy Costs
(96
)
(118
)
(18.6
)%
96
118
(18.6
)%
0.8
%
0.9
%
Gain on Divestiture of Coyote
156
—
N/A
(156
)
—
N/A
(1.2
)%
—
%
Goodwill and Asset Impairment Charges
(101
)
(236
)
(57.2
)%
101
236
(57.2
)%
0.7
%
1.9
%
Expense for Regulatory Matter
(45
)
—
N/A
45
—
N/A
0.4
%
—
%
Non-GAAP Adjusted Measure
$
11,716
$
11,814
(0.8
)%
$
1,018
$
1,108
(8.1
)%
8.0
%
8.6
%
Certain prior year amounts have been
reclassified to conform to the current year presentation, including
the recast of air cargo volume to U.S. Domestic, with no change to
consolidated results. Certain amounts are calculated based on
unrounded numbers.
United Parcel Service,
Inc.
Reconciliation of Free Cash
Flow (Non-GAAP measure)
(unaudited):
Twelve Months Ended December
31
(amounts in millions)
2024
Cash flows from operating activities
$
10,122
Capital expenditures
(3,909
)
Proceeds from disposals of property, plant
and equipment
113
Other investing activities
(24
)
Free Cash Flow (Non-GAAP measure)
$
6,302
Certain prior year amounts have been
reclassified to conform to the current year presentation, including
the recast of air cargo volume to U.S. Domestic, with no change to
consolidated results. Certain amounts are calculated based on
unrounded numbers.
United Parcel Service,
Inc.
Reconciliation of Non-GAAP
Adjusted Debt to Non-GAAP Adjusted EBITDA
(unaudited)
TTM (1) Ended
(amounts in millions)
December 31,
2024
Net Income
$
5,782
Add Back:
Income Tax Expense
1,660
Interest Expense
866
Depreciation and Amortization
3,609
Non-GAAP EBITDA
11,917
Add back (deduct):
Transformation Strategy Costs
322
Gain on Divestiture of Coyote
(156
)
One-Time Payment for International
Regulatory Matter
88
Goodwill and Asset Impairment Charges
108
Expense for Regulatory Matter
45
Defined Benefit Plan (Gains) and
Losses
665
Investment Income and Other Pension
Income
(505
)
Multiemployer Pension Plan Withdrawal
19
Non-GAAP Adjusted EBITDA
$
12,503
Debt and Finance Leases, Including Current
Maturities
$
21,284
Add Back:
Non-Current Pension and Postretirement
Benefit Obligations
6,859
Non-GAAP Adjusted Total Debt
$
28,143
Non-GAAP Adjusted Total Debt/Net
Income
4.87
Non-GAAP Adjusted Total Debt/Non-GAAP
Adjusted EBITDA
2.25
(1) Trailing Twelve Months
Certain prior year amounts have been reclassified to conform
to the current year presentation, including the recast of air cargo
volume to U.S. Domestic, with no change to consolidated results.
Certain amounts are calculated based on unrounded numbers.
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United Parcel Service (NYSE:UPS)
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United Parcel Service (NYSE:UPS)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025
